Interest Rates for Late and Overpaid Taxes - New calculation methods

Written by Ian Congreave - Filed under: Interest Rates on August 5th, 2009

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Following on from last week’s announcement of measures to rationalise the setting of HMRC’s interest rates for late and overpaid taxes, HMRC has announced that the rates will be recalculated according to the new rules after the September 2009 meetings of the Monetary Policy Meeting. Even if there is no change to the Bank of England base rate, the interest rate paid on overpaid tax will increase to 0.5%. The changes will not be retrospective.